The Belfield Group, owner of brands like Westbridge, Tetrad, and Clinchplain, is set to release its end-of-year financial accounts, revealing challenges faced in 2023 due to declining consumer demand in the retail, leisure, and caravan sectors.
High inflation and interest rates have negatively affected consumer spending, leading to a 13.2% drop in revenues from £129.6 million to £112.6 million. This decline resulted in an operating loss of £2.8 million, compared to £1.4 million in the previous year.
Photo: The Belfield Group.
Despite these setbacks, Belfield remains optimistic, highlighting ongoing transformation initiatives aimed at improving operational efficiency across its divisions. Business Improvement Plans (BIPs) have contributed £4.8 million to in-year profitability, partially offsetting revenue losses. The company's revenue break-even point has been reduced from £127.2 million in 2022 to £114.7 million in 2023, with a target to lower it further to approximately £80 million by the end of 2024.
To support its transformation efforts, Belfield has secured additional funding, including £2 million in equity funding and a new debt structure from Virgin Money. Further financial support includes an £1.8 million investment from a major shareholder and additional short-term funding from both Virgin Money and the Development Bank of Wales.
Looking ahead, Belfield is confident that, following restructuring and the positive effects of the BIP programs, profitability will improve significantly in 2024 and beyond.
Source: www.furniturenews.net